Oil prices surge as tensions mount in Middle East

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors informed of everything they need to know, no matter where they are in the world. Like what you see? You can subscribe here.

Dow hits record, tech stocks lag
this Dow Jones Industrial Average closure Record high The 30-stock index rose 0.16 percent as investors pulled out of technology stocks. S&P 500 and Nasdaq Composite Index A decrease of 0.32% and 0.85% respectively. Nvidia The company’s shares fell 2.25% before its earnings report on Wednesday. Broadcom and Micron At the same time, the 10-year Treasury yield Ministry of Finance Slightly increased Federal Reserve Chairman Jerome Powell hinted at plans to cut interest rates.

Apple’s new CFO
apple Announcement of Chief Financial Officer Luca Maestri to step down On January 1, Apple’s chief financial officer will be replaced by long-time Apple employee Kevan Parekh. Maestri, who has served as CFO since 2014, will continue to lead the IT, security, and real estate development teams. Parekh currently serves as vice president of financial planning and analysis and is a key member of Apple’s financial leadership. During Maestri’s tenure, Apple’s revenue more than doubled and the company’s stock price soared more than 800%. In addition, the company plans to Press conference held on September 9 It is expected to unveil new iPhones and Apple Watches at its headquarters.

Oil prices soar
US crude oil prices The increase was 3.5% due to Libyan production halted and tensions escalated between Israel and HezbollahLibya’s eastern government shut down oil production and exports amid a political dispute over who holds power at the central bank, which could affect global markets. Meanwhile, Israel and Hezbollah are engaged in heavy fighting. Ongoing tensions in the Middle East, including recent assassinations of militant leaders, have put the region on edge.

Lasting Power
ExxonMobil Oil and gas are forecast to account for By 2050, global energy consumption will account for more than 50%Despite efforts by countries to reduce their reliance on fossil fuels, Oil demand will remain stable through 2050 but will remain above 100 million barrels per day. This continued demand poses a challenge to the global climate goal of achieving net zero carbon emissions by 2050. While gasoline demand is expected to decline, oil will remain essential for manufacturing, chemical production and heavy transportation.

“Orange Pilling”
Former President Donald Trump’s newfound support for Bitcoin appears to have been influenced by a small group of cryptocurrency supporters, especially three people from Puerto Rico. They, along with others in Trump’s inner circle, have been working behind the scenes to change his mind about Bitcoin, a process the Bitcoin community has dubbed the “orange pill.” The term is derived from the concept of the “red pill” from the movie The Matrix, symbolizing a shift in ideology toward Bitcoin. Trump’s support appears to be tied to potential financial support from the cryptocurrency community. CNBC’s MacKenzie Sigalos has Backstory.

(Pro) Nvidia Hedge
Bank of America warned that “investors may be underestimating the risk of Nvidia’s earnings disappointment,” which could lead to a broader market sell-off. Hedging Risk.

BoeingThe aerospace giant’s space ambitions could be in jeopardy as speculation grows that it could sell its troubled space business after problems with its Starship spacecraft caused the company to fail. Two astronauts trapped On the International Space Station.

According to Reuters, Boeing and Lockheed Martin already Negotiating sale of its rocket launch joint ventureUnited Launch Alliance is being sold to Sierra Space for an estimated $2 billion to $3 billion. The potential sale comes as Boeing’s dominance in space exploration is increasingly challenged by younger, more nimble rivals.

Boeing, once the backbone of NASA’s Apollo missions, now finds itself overshadowed by Elon Musk’s SpaceX, which has quickly become the A reliable partner for manned space missionsBoeing is not the only company facing these challenges. Intel,in Falling behind in AI and smartphone markets Competitors include Nvidia, Broadcom and AMDBoeing is grappling with the reality of being overtaken in an industry it once led.

“This incident could negatively impact Boeing’s reputation with NASA, and it is unclear if or when the company will be able to send astronauts into space again,” Bank of America analyst Ronald Epstein said in a note. Divestiture of manned spaceflight business“”.

Epstein’s criticisms didn’t stop there. He pointed to gaps in Boeing’s technical staff and suggested the company may have strayed from its engineering roots — a potential factor in its recent setbacks.

These challenges are Boeing’s new CEO Robert Ortberg His role is to lead the company in addressing numerous safety issues on commercial aircraft.

Boeing shares fell 0.85% to $173, but Epstein maintained his 12-month price target at $200, which would represent a 15% upside from Monday’s close.

As for the broader market, the Dow Jones closed at an all-time high. Despite a rotation into tech stocks, the weighting of tech stocks weighed on the S&P 500.

While UBS acknowledged recent volatility in tech stocks, the firm maintained that the long-term growth potential of artificial intelligence will support the broader market.

“We believe U.S. equities have further room to rise in a constructive environment driven by Fed rate cuts, growth prospects for AI and healthy earnings growth,” UBS wrote in a note Monday, reiterating its year-end target for the S&P 500 of 5,900, which would represent a 5% gain from current levels.